Question: Defender: Current trade-in (re-sale) value = $7,000, decreasing at an annual rate of 50% from the previous years value O&M = $2,000 in year 1,
Defender:
- Current trade-in (re-sale) value = $7,000, decreasing at an annual rate of 50% from the previous years value
- O&M = $2,000 in year 1, increasing by $2000 per year
- Immediate overhaul required (if kept) = $500
- Maximum possible lifespan is 5 additional years of service (from now)
Find the AEC at the ESL. Assume MARR = 11%
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| a) 6648 - 6688 |
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| b) None of the other answers |
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| c) 6555 6595 |
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| d) 6478 6518 |
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| e) 6805 6845 |
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| f) 6274 6314 |
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